This is true of manufacturers as well as retailers. And it has engendered a frenzy of cost cutting and price erosion.
  
But this is fundamentally misguided. Customers are not just clamoring for lower prices. Just look at McDonald's and Daiei. These two companies led the assault on costs. they were the low-price leaders. But while they may have bought sales for a while, there was no loyalty, and they are both in serious trouble today.
  
So it is time for other companies to wake up, to draw the necessary lessons, and to shift their focus from price to value. And focusing on value means focusing on creating new value, getting it to the market, and getting it recognized for what it is worth. This is what is going to distinguish the companies that do well.
  
And once this is realized, it turns out that the sales force's job is not to negotiate price-and-volume deals but to explain the value proposition -- to convey the sense of wonder the product imparts. There are some companies that "get it." One is Meiji with its natural-taste Oishii Milk. Another is Kagome with its Tomato Field strategy. These companies are proof positive that, despite the pessimism, innovative Japanese marketing lives.
  
Mizuguchi Kenji
Strategic Design Institute